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LLC net income and statement of members' equity.

Schedule of Division of Income

Journal

Statement of Members' Equity

Instructions

Marvel Media, LLC$,$ has three members: WLKT Partners, Madison Sanders, and Observer Newspaper, LLC$.$ On January $1,20Y2,$ the three members had equity of $$217,500,$$$40,300,$ and $$167,700,$ respectively. WLKT Partners contributed an additional $$53,800$ to Marvel Media, LLC$,$ on June $1,20$Y$2.$ Madison Sanders received an annual salary allowance of $$56,900$ during $20$ Y $.$ The members' equity accounts are also credited with $10\%$ interest on each member's January $1$ capital balance. Any remaining income is to be shared in the ratio of $4$:$3$:$3$ among the three members. members. The revenues, expenses, and net income for Marvel Media, LLC$,$ for $20$ Y $2$ were $$1,235,800,886,700$ and $$349,100$ respectively.

Amounts equal to the salary and interest allowances were withdrawn by the members.

Required:

A$.$ Determine the division of income among the three members.

B$.$ Prepare the journal entries to close the net income and withdrawals to the individual member equity accounts. Refer to the Chart of Accounts for exact wording of account titles.

C$.$ Prepare a statement of members' equity for $20$ Y $2.$

D$.$ What are the advantages of an income$-$sharing agreement for the members of this LLC$?$

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